A bank advertises an adjustable rate mortgage with the following terms: 20 year 4/1 ARM at 3% with a 3/7 cap structure
What are the maximum interest rates for the 5th year and for the life of the mortgage?

a.) 5th year: 6%; Lifetime: 7%
b.) 5th year: 6%; Lifetime: 10%
c.) 5th year: 4%; Lifetime: 7%
d.) 5th year: 4%; Lifetime: 11%

Over the course of the school year, you keep track of how much snow falls on a given day and whether it was a snow day. your data indicates that of twenty-one days with less than three inches of snow, five were snow days, while of the eight days with more than three inches of snow, six were snow days. if all you know about a day is that it is snowing, what is the probability that it will be a snow day?